2016 -- H 7953

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LC005399

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- LIQUOR CONTROL ADMINISTRATION

     Introduced By: Representatives Almeida, McKiernan, Palangio, Diaz, and Regunberg

     Date Introduced: March 17, 2016

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 3-2-2 of the General Laws in Chapter 3-2 entitled "Liquor Control

Administration" is hereby amended to read as follows:

     3-2-2. Supervision. -- (a) The department has general supervision of the conduct of the

business of manufacturing, importing, exporting, storing, transporting, keeping for sale, and

selling beverages.

      (b) The department may lease a warehouse for the purpose of efficiently exercising its

powers and duties of inspection and may upon reasonable charges store beverages for license

holders in the warehouse. No lease shall be for a longer period than five (5) years and every lease

shall contain the provision that if it becomes unlawful to manufacture, keep for sale, and to sell

beverages in this state it shall become void.

      (c) The department has the power at any time to issue, renew, revoke and cancel all

manufacturers', wholesalers' and retailers' Class G licenses and permits as are provided for by this

title.

      (d) The department shall supervise and inspect all licensed places to enforce the

provisions of this title and the conditions, rules and regulations which the department establishes

and authorizes.

     (e) Nothing contained in this chapter shall be deemed to supersede the authority vested in

cities and towns pursuant to chapters 22, 23 and 24 of title 5.

     SECTION 2. Section 3-5-21 of the General Laws in Chapter 3-5 entitled "Licenses

Generally" is hereby amended to read as follows:

     3-5-21. Revocation or suspension of licenses -- Fines for violating conditions of

license Revocation or suspension of licenses -- Fines and penalties for violating conditions of

license. -- (a) Every licensee, and any agents or employees of the licensee, shall have an

affirmative duty to cooperate with local boards and law enforcement investigating any potential

licensing violation at the licensee's establishment, including, but not limited to, providing any

video recordings of the premises, answering the questions of the local boards and law

enforcement, and providing immediate and full access to the licensee's premises. Any failure of a

licensee, its agents or employees, to comply with this provision shall constitute an independent

basis for revocation or suspension of the license.

     (b) Every license is subject to revocation or suspension and a licensee is subject to fine by

the board, body or official issuing the license, or by the department or by the division of taxation,

on its own motion, for:

     (1) Any breach by the holder of the license of the conditions on which it was issued; or

     (2) Any for violation by the holder of the license of any rule or regulation applicable to

the licensee; or , or for breach of any provisions of this section.

     (3) Any fraudulent act or "material misrepresentation" made by an applicant for a license

or a licensee, including, but not limited to, any misrepresentation concerning the format of the

establishment, and/or any other information on which the licensing board reasonably relies in

rendering any decision concerning a license, licensee or establishment; or

     (4) Failure to cooperate with local boards and law enforcement as required by subsection

(a) of this section; or

     (5) For breach of any provisions of this chapter; or

     (6) For operating in any manner inconsistent with the license, or in any manner consistent

with another class license without first coming before the board for a new license application.

     (b)(c) Any fine imposed pursuant to this section shall not exceed five hundred dollars

($500) for the first offense and shall not exceed one thousand dollars ($1,000) for each

subsequent offense. For the purposes of this section, any offense committed by a licensee three

(3) years after a previous offense shall be considered a first offense.

      (c)(d) In the event that a licensee is required to hire a police detail and the police refuse

to place a detail at the location because a licensee has failed to pay outstanding police detail bills

or to reach a payment plan agreement with the police department, the license board may prohibit

the licensee from opening its place of business until such time as the police detail bills are paid or

a payment plan agreement is reached.

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     (e) Upon any violation by a licensee under §3-5-21(b), the local licensing board, at its

sole discretion, may impose a limitation on the hours of operation of the licensee, regardless of

the license type, and notwithstanding any prior approval of an application for a later closing time.

     SECTION 3. Sections 3-7-7, 3-7-7.3, 3-7-8, 3-7-16.6 and 3-7-19 of the General Laws in

Chapter 3-7 entitled "Retail Licenses" are hereby amended to read as follows:

     3-7-7. Class B license Class B license -- Food prepared on premises. -- (a) (1) A

retailer's Class B license is issued only to a licensed bona fide tavern keeper or victualer whose

tavern or victualing house may be open for business and regularly patronized at least from nine

o'clock (9:00) a.m. to seven o'clock (7:00) p.m. provided no beverage is sold or served after one

o'clock (1:00) a.m., nor before six o'clock (6:00) a.m. Local licensing boards may fix an earlier

closing time within their jurisdiction, at their discretion. The East Greenwich town council may,

in its discretion, issue full and limited Class B licenses which may not be transferred, but which

shall revert to the town of East Greenwich if not renewed by the holder. The Cumberland town

council may, in its discretion, issue full and limited Class B licenses which may not be transferred

to another person or entity, or to another location, but which shall revert to the town of

Cumberland if not renewed by the holder.

      The Pawtucket city council may, in its discretion, issue full and limited Class B licenses

which may not be transferred to another person or entity, or to another location, but which shall

revert to the city of Pawtucket if not renewed by the holder. This legislation shall not affect any

Class B license holders whose licenses were issued by the Pawtucket city council with the right to

transfer.

      (2) The license authorizes the holder to keep for sale and sell beverages including beer in

cans, at retail at the place described and to deliver them for consumption on the premises or place

where sold, but only at tables or a lunch bar where food is served. It also authorizes the charging

of a cover, minimum, or door charge. The amount of the cover, or minimum, or door charge is

posted at the entrance of the establishments in a prominent place.

      (3) Holders of licenses are not permitted to hold dances within the licensed premises,

unless proper permits have been properly obtained from the local licensing authorities.

      (4) Any holder of a Class B license may, upon the approval of the local licensing board

and for the additional payment of two hundred dollars ($200) to five hundred dollars ($500), open

for business at twelve o'clock (12:00) p.m. and on Fridays and Saturdays and the night before

legal state holidays may close at two o'clock (2:00) a.m. All requests for a two o'clock (2:00) a.m.

license shall be advertised by the local licensing board in a newspaper having a circulation in the

county where the establishment applying for the license is located.

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      (5) A holder of a retailer's Class B license is allowed to erect signs advertising his or her

business and products sold on the premises, including neon signs, and is allowed to light those

signs during all lawful business hours, including Sundays and holidays.

      (6) Notwithstanding the provisions of subsection (a) and/or § 3-7-16.4, a holder of a

retail class B and/or class ED license may apply to the municipality in which such licensee is

located for a permit to conduct a so-called "Lock-In Event", under the following conditions:

      (i) A "Lock-In Event" is defined as an event where a specified group of individuals are

permitted to remain in a licensed premises after closing hours including, but not limited to, the

hours of 1:00 a.m. to 6:00 a.m.

      (ii) A Lock-In Event must have the approval of the municipal licensing authority

pursuant to a permit issued for each such event, subject to such conditions as such may attach to

the permit. The fee for the permit shall be not less than fifty dollars ($50.00) nor more than one

hundred dollars ($100). The granting or denial of a Lock-In Event permit shall be in the sole

discretion of the municipal licensing authority and there shall be no appeal from the denial of

such a permit.

      (iii) During the entire period of any Lock-In Event, all alcoholic beverages must be

secured in place or removed from the public portion of the premises and secured to the

satisfaction of the municipality issuing the Lock-In Event permit.

      (iv) During the Lock-In Event, the establishment shall be exclusively occupied by the

Lock-In Event participants and no other patrons shall be admitted to the premises who are not

participants. It shall be a condition of the permit that participants shall not be admitted more than

thirty (30) minutes after the permitted start time of the Lock-In Event, except in the event of

unforeseen travel delays, nor permitted to re-enter the event if they leave the licensed premises.

      (v) As part of the Lock-In Event, food shall be served.

      (vi) The municipal licensing authority may, in its sole discretion, require the presence of

a police detail, for some or all of the event, and the number of officers required, if any, shall be

determined by the municipality as part of the process of issuing the Lock-In Event permit. The

licensee shall be solely responsible for the cost of any such required police detail.

     (7) Any holder of a Class B license must serve food for the entire time they are serving

alcohol. At certain times the licensee may choose to serve a limited menu; however, in no event

shall any limited menu include less than fifty percent (50%) of the menu items available on the

full menu. In the city of Providence, a Class B license holder must provide the board of licenses a

copy of both the full menu and the limited menu upon application, as well as at any time in which

either menu changes.

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      (b) The annual license fee for a tavern keeper shall be four hundred dollars ($400) to two

thousand dollars ($2,000), and for a victualer the license fee shall be four hundred dollars ($400)

to two thousand dollars ($2,000). In towns with a population of less than two thousand five

hundred (2,500) inhabitants, as determined by the last census taken under the authority of the

United States or the state, the fee for each retailer's Class B license shall be determined by the

town council, but shall in no case be less than three hundred dollars ($300) annually. If the

applicant requests it in his or her application, any retailer's Class B license may be issued limiting

the sale of beverages on the licensed premises to malt and vinous beverages containing not more

than twenty percent (20%) alcohol by volume, and the fee for that limited Class B license shall be

two hundred dollars ($200) to one thousand five hundred dollars ($1,500) annually. The fee for

any Class B license shall in each case be prorated to the year ending December 1 in every

calendar year.

      (1) Upon the approval and designation of a district or districts within its city or town by

the local licensing board, the local licensing board may issue to any holder of a Class B license or

a Class ED license, an extended hours permit to extend closing hours on Thursdays, Fridays and

Saturdays, the night before a legal state holiday or such other days as determined by the local

board, for one hour past such license holder's legal closing time as established by the license

holder's license or licenses including, but not limited to, those issued pursuant to subdivision (4)

hereof. The extended hours permit shall not permit the sale of alcohol during the extended one-

hour period and shall prohibit the admittance of new patrons in the establishment during the

extended one-hour period. The designation of such district(s) shall be for a duration of not less

than six (6) months. Prior to designating any such district, the local licensing authority shall hold

a hearing on the proposed designation. The proposed designation shall include the boundaries of

the proposed district, the applicable days for the extended hours, and the duration of the

designation and the conditions imposed. The proposed designation shall be advertised at least

once per week for three (3) weeks prior to the hearing in a newspaper in general circulation in the

city or town. The city or town will establish an application process for an extended hours permit

for such license holder and may adopt rules and regulations to administer the permit.

     3-7-7.3. Class B licenses -- Restriction on entertainment. -- (a) Notwithstanding any

provision of this chapter or in the Rhode Island general laws to the contrary, in the case of any

city or town which issues any retailer's Class B license this city or town may restrict or prohibit

entertainment at these licensed facilities, in accordance with objective standards adopted by the

municipality and approved by the department of business regulation, provided that any standard

shall be applied uniformly to all of these licensed facilities.

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     (b) The licensing board for the city of Providence is authorized to immediately suspend

or revoke the license or exercise other remedies with respect to:

     (1) Any Class B licensee that provides entertainment without an entertainment license

issued by the city of Providence pursuant to its authority under chapter 22 of title 5; and/or

     (2) Any Class B licensee that engages in activities exceeding those permitted by a Class

B license, unless such licensee has obtained any additional license permitting such activities,

including, but not limited to, a Class N license.

     3-7-8. Class C license. -- (a) A retailer's Class C license authorizes the holder of the

license to keep for sale and to sell beverages at retail at the place described in the license and to

deliver those beverages for consumption on the premises where sold. No beverages shall be sold

or served after twelve o'clock (12:00) midnight nor before six o'clock (6:00) a.m., except as

provided in subsection (e) herein. Local license boards in the several cities and towns may fix an

earlier closing time within their discretion. The license authorizes the holder to keep for sale and

sell beverages, including beer in cans, at retail at the place described in the license and to deliver

those beverages for consumption on the premises.

      (b) The license authorizes the holder to sell pre-packaged foods prepared off the

premises with beverages but prohibits the preparation and serving of foods cooked on the

premises. The holder of the license may serve with beverages and without charge popcorn,

crackers, bread, pretzels, sausage of any type, pickles, sardines, smoked herring, lupino beans,

and potato chips. No food shall be cooked on the premises but pre-packaged foods prepared and

cooked off the premises and purchased by the holder from a supplier may be warmed and sold on

the premises in their original packaging, and all foods shall be covered in accordance with the

regulations of the state department of health. The annual fee for the license is four hundred

dollars ($400) to eight hundred dollars ($800), prorated to the year ending December 1 in every

calendar year.

      (c) The town councils of the towns of Coventry, Scituate and South Kingstown are

authorized to prohibit by ordinance the issuance of Class C licenses. Upon prohibiting Class C

licenses, the license board of the towns of Coventry, Scituate and South Kingstown shall issue

Class B licenses to the holder of all Class C licenses in those towns. The Class B licenses may be

issued to the holders of Class C licenses notwithstanding any requirements of § 3-7-7. The

holders of Class C licenses shall have the full privileges of a Class B license and shall pay the

annual fee provided for Class B licenses.

      (d) Notwithstanding any prohibitions on the preparation and serving of foods cooked on

the premises contained in paragraph (b) herein, the holders of Class C licenses in the city of

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Newport are authorized to prepare and serve foods cooked on the premises. The holders of Class

C licenses in the city of Newport shall be deemed to be victualling houses for purposes of § 3-8-

1.

      (e) Any holder of a Class C license may, upon the approval of the local licensing board

and for the additional payment of two hundred dollars ($200), sell or serve beverages on Fridays

and Saturdays and the night before legal state holidays until one o'clock (1:00) a.m. All requests

for a one o'clock (1:00) a.m. license shall be advertised, at the applicant's expense, by the local

licensing board in a newspaper with a general statewide circulation or having a general

circulation in the city or town where the establishment applying for the license is located.

     (f) The licensing board for the city of Providence is authorized to immediately suspend or

revoke the license or exercise other remedies with respect to:

     (1) Any Class C licensee that provides entertainment without an entertainment license

issued by the city of Providence pursuant to its authority under chapter 22 of title 5; and/or

     (2) Any Class C licensee that engages in activities exceeding those permitted by a Class

C license, unless such licensee has obtained any additional license permitting such activities,

including, but not limited to, a Class N license.

     3-7-16.6. Class N nightclub license. -- (a) Notwithstanding any provision of this title to

the contrary, any town or city council, by ordinance, may authorize the licensing authorities

designated as having the right, power, and jurisdiction to issue licenses under this title pursuant to

§ 3-5-15 to designate and issue a special class of Class N nightclub licenses within its

jurisdiction. The license authorizes the holder to keep for sale and sell beverages including beer in

cans, at retail at the place described and to deliver them for consumption on the premises or place

where sold. It also authorizes the charging of a cover, minimum, or door charge. The amount of

the cover, or minimum, or door charge shall be posted at the entrance of the establishments in a

prominent place.

      (b) A Class N license, when so authorized, shall be required by each establishment

within the jurisdiction which:

      (1) Has as its primary source of revenue the sale of alcoholic beverages and/or cover

charges;

      (2) Holds a Class B or Class ED license;

      (3) Has a fire department occupancy permit of no less than two hundred (200) persons

and no greater than ten thousand (10,000) persons; or any establishment with a fire department

occupancy permit of less than two hundred (200) persons that holds an entertainment license.

      (c) Any establishment with a Class N license which admits patrons under twenty-one

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(21) years of age on the premises of the establishment when alcoholic beverages are being sold,

served, or permitted on the premises shall, during the time the patrons are permitted on the

premises:

      (1) Require one form of identification. The identification shall contain the bearer's

photograph, and must be one of the following: state driver's license, US military identification,

state issued identification card, or passport, from every person claiming to be twenty-one (21)

years of age or older;

      (2) Identify patrons over twenty-one (21) years of age with both an identifiable hand

stamp and a bracelet and shall require every patron to show both hand stamp and bracelet before

purchasing an alcoholic beverage;

      (3) Sell not more than one alcoholic beverage to an eligible patron in a single

transaction, and shall prohibit a patron from carrying more than one alcoholic beverage from a

bar or drink dispensing location;

      (4) Not permit any patron who leaves the premises to be readmitted prior to closing

without payment of the same admission or cover charge required of patrons entering the premises

initially.

      (d) The licensing authority of each town or city shall set the closing time for each

establishment holding a Class N nightclub license within its jurisdiction pursuant to § 3-7-7(a)(1)

and (a)(4), and notwithstanding other provisions of those subdivisions, an establishment holding a

Class N nightclub license which is permitted to remain open until two o'clock (2:00) a.m., shall

not admit patrons after one o'clock (1:00) a.m.

      (e) The licensing authority of each town or city will establish the cost and duration of all

Class N nightclub licenses issued by that authority.

      (f) Notwithstanding the provisions of § 3-5-17, no licensing authority may issue a Class

N nightclub license unless the following notice requirements have been met:

      (1) Any establishment applying for a Class N nightclub license, or the renewal of that

license, or which is the subject of a hearing relating to its Class N nightclub license, must provide

the general public with notice of its application by posting a twenty-four (24) inch by thirty-six

(36) inch notice on its premises, in a manner clearly visible to the general public, at least thirty

(30) days prior to the hearing date before the licensing authority for the license, and at least thirty

(30) days prior to hearings related to the license on appeal to the director. If any hearing is

scheduled to occur in less than thirty (30) days, the applicant or Class N nightclub license holder

must post this notice within three (3) business days after its receipt of notification of that hearing

from the licensing authority or the director.

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      (2) The notice shall contain the name of the applicant and a description by street and

number or other plain designation of the particular location for which the Class N nightclub

license is requested. The notice shall state that remonstrants are entitled to be heard at the hearing

on the Class N nightclub license, and shall provide the time and place of that hearing.

      (g) Any establishment that holds a Class N nightclub license must:

      (1) Comply with local ordinances governing noise levels;

      (2) Cooperate with law enforcement officials;

      (3) Provide private security for the safety of patrons both inside and outside the

establishment, which private security must be certified by TIPS or a similar agency approved by

the licensing authority; and

      (4) Collect trash generated by the establishment every night that the establishment is

open in an area surrounding the premises that is reasonable and prudent, given the size of the

establishment.

      (h) The licensing authority of each town or city will develop requirements for police

details for the purposes of public safety and traffic control in and around the premise of each

establishment holding a Class N nightclub license.

      (i) (1) The licensing authority which has issued a license under this section may ban the

admittance of persons under the age of twenty-one (21) on the licensee's premise:

      (i) On certain nights; or

      (ii) At certain times; or

      (iii) At all times.

      (2) Provided however, any ban under this subsection herein shall be supported by a

finding that:

      (i) The licensee has failed to implement measures designed to prevent underage

drinking; and

      (ii) The licensee has multiple violations of the provisions of one or more of the following

sections: 3-8-1, 3-8-4 and/or 3-8-10.

     (j) Upon the approval and designation of a district or districts within its city or town by

the local licensing board, in accordance with this subsection, the local licensing board may issue

to any holder of a Class N license an extended hours permit to extend closing hours on

Thursdays, Fridays and Saturdays, the night before a legal state holiday or such other days as

determined by the local board, for one hour past such license holder's legal closing time as

established by the license holder's license or licenses including, but not limited to, those issued

pursuant to subsection (d) of this section. The extended hours permit shall not permit the sale of

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alcohol during the extended one-hour period and shall prohibit the admittance of new patrons in

the establishment during the extended one-hour period. The designation of such district shall be

for a duration of not less than six (6) months. Prior to designating any such district, the local

licensing authority shall hold a hearing on the proposed designation. The proposed designation

shall include the boundaries of the proposed district, the applicable days for the extended hours,

and the duration of the designation and the conditions imposed. The proposed designation shall

be advertised at least once per week for three (3) weeks prior to the hearing in a newspaper in

general circulation in the city or town. The city or town will establish an application process for

an extended hours permit for such license holder and may adopt rules and regulations to

administer the permit.

     3-7-19. Objection by adjoining property owners -- Proximity to schools and

churches. -- (a) Retailers' Class B, C, N and I licenses under this chapter and any license

provided for in §3-7-16.8 shall not be issued to authorize the sale of beverages in any building

where the owner of the greater part of the land within two hundred feet (200') of any point of the

building files with the body or official having jurisdiction to grant licenses his or her objection to

the granting of the license, nor in any building within two hundred feet (200') of the premises of

any public, private, or parochial school or a place of public worship. In the city of East

Providence, retailer's Class A licenses shall not be issued to authorize the sale of beverages in any

building within five hundred feet (500') of the premises of any public, private, or parochial

school, or a place of public worship.

      (b) As used in this section, "private school" means any nonpublic institution of

elementary or secondary (K-12th Grade) education, accredited or recognized as a private school

by the department of elementary and secondary education or the school committee of the city or

town having jurisdiction over private schools.

      (c) This section shall not apply to any Class B or C license holder whose license was

issued prior to January 1, 1978, nor shall this section apply to, or constitute the basis of, an

objection to, or disapproval of, the transfer of a Class B or C license where the location of the

licensed establishment predates the location of the public, private, or parochial school, or place of

public worship.

      (d) (1) Notwithstanding the provisions of this section, the board of licenses of the city of

Providence shall, after application, have the authority to exempt from the provisions of this

section any proposed retailer Class B, C, or I license intended to be located within the following

described area(s) in the city of Providence:

      (A) Beginning at a point, that point being the intersection of the southerly line of Smith

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Street and the easterly taking line of Interstate Route 95;

      Thence running in a general southwesterly direction along the easterly taking line of

Interstate Route 95 to the center line of Kingsley Avenue;

      Thence turning and running northwesterly in part along the southerly line of Kingsley

Avenue to its intersection with the southerly line of Harris Avenue;

      Thence turning and running westerly along the southerly line of Harris Avenue to its

intersection with the southerly line of Atwells Avenue;

      Thence turning and running easterly along the southerly line of Atwells Avenue to the

easterly taking line of Interstate Route 95;

      Thence turning and running in a general southerly and southeasterly direction along the

easterly taking line of Interstate Route 95 to the center line of Pine Street;

      Thence turning and running northeasterly along the northerly taking line of I-195 to its

intersection with the northerly taking line of I-195;

      Thence turning and running northeasterly along the northerly taking line of I-195 to its

intersection with the westerly shore line of the Providence River;

      Thence turning and running northerly along the westerly shore line of the Providence

River to its intersection with the southerly line of Crawford Street;

      Thence running northwesterly across Dyer Street to the intersection of the westerly line

of Dyer Street to the southerly line of Custom House Street;

      Thence running northerly in part along the southerly line of Dyer Street and in part along

the westerly line of Market Square to its intersection with the westerly line of Canal Street;

      Thence turning and running northerly along the westerly line of Canal Street to its

intersection with the southerly line of Smith Street;

      Thence turning and running westerly along the southerly line of Smith Street to the point

and place of beginning.

      (B) Beginning at a point, that point being the intersection of the westerly line of Brook

Street and the northerly line of Wickenden Street;

      Thence running in a general westerly direction along the northerly line of Wickenden

Street to the intersection of Wickenden Street and Benefit Street;

      Thence running in a general northerly direction along the easterly line of Benefit Street

to the intersection of Benefit Street and Sheldon Street;

      Thence turning and running in an easterly direction along the southerly line of Sheldon

Street to the intersection of Sheldon Street and Brook Street;

      Thence turning and running in a general southerly line to the intersection of Brook Street

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and Wickenden Street that being the point of beginning.

      (2) Notwithstanding the provisions of this section, the board of licenses of the city of

Newport shall, after application, have authority to exempt from the provisions of this section any

proposed retailer Class B license intended to be located within the following described area in the

city of Newport:

      Beginning at a point, that point being the intersection of the southerly line of Broadway

and the easterly line of Courthouse Square;

      Thence running in a general northeasterly direction along the southerly line of Broadway

a distance of one hundred and two feet (102') to a point at the southeasterly corner of land now or

formerly owned by the Newport Historical Society;

      Thence turning and running in a southeasterly direction ninety-eight and nine-tenths feet

(98.9') along the southwesterly border of land now or formerly owned by the Newport Historical

Society;

      Thence turning and running in a southwesterly direction one hundred and twelve feet

(112') to Courthouse Street; and

      Thence turning and running in a generally northwesterly direction along Courthouse

Street for a distance of ninety feet (90') to the point and place of beginning.

      (3) Notwithstanding the provisions of this section, the board of licenses of the town of

Warren shall, after application, have the authority to exempt from the provisions of this section

any proposed retailer Class B, C, or I license intended to be located within any zoning district in

the town of Warren which is designated as a limited business district or as a general business

district pursuant to the zoning ordinance of the town of Warren.

      (4) Notwithstanding the provisions of this section, the board of licenses of the town of

Bristol shall, after application, have the authority to exempt from the provisions of this section

any proposed retailer Class B license intended to be located on lot 34 of tax assessors plat 10 of

the Bristol tax assessors map as of December 31, 1999, including that portion of the public

sidewalk contiguous to said lot.

      (5) Notwithstanding the provisions of this section, the board of licenses for the city of

Newport shall, after application, have the authority to exempt from the provisions of this section

as to places of public worship any proposed sidewalk cafe as defined in the Codified Ordinance

of the city of Newport, provided that the applicant be an existing holder of a Retailers' Class B

license.

      (6) Notwithstanding the provisions of this section, the board of licenses of the city of

Providence shall, after application, have the authority to exempt from the provisions of this

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section any proposed retailer Class B license intended to be located on lot 131 of tax assessors

plat 68 of the Providence tax assessors map as of December 31, 1999 and any proposed retailer

Class B license intended to be located on lot 21 of the tax assessors map plat 49 and any proposed

retailer class BV license intended to be located on lots 3 and 5 of tax assessors map plat 35 of the

Providence tax assessors map as of December 31, 2003.

      (7) Notwithstanding the provisions of this section, the board of licenses of the city of

Cranston shall, after application, have the authority to exempt from the provisions of this section

any proposed retailer Class B license intended to be located on either lot 160 of tax assessor's plat

9, and/or on lot 152 of tax assessor's plat 9, of the Cranston tax assessor's map as of December 31,

2002; provided, however, as to the subsequent transfer of said Class B license issued by the city

of Cranston under this exemption, whether said transfer is attributable to the holder's death or

otherwise, any person desiring to become the potential transferee of said Class B license shall

comply with those restrictions as to its use (and shall refrain from those activities which result in

its reversion) set forth in the city of Cranston Memorandum of Understanding dated May 13,

2003 and, in addition, those requirements applicable to anyone who desires to become a

transferee of a validly issued and outstanding Class B license designated for use in any location in

the state of Rhode Island. Neither the exemption granted herein nor any future exemption granted

hereafter shall be effective until the proposed Class B license and the underlying property owner

is certified to be current in the payment of any and all local and state taxes.

      (8) Notwithstanding the provisions of this section, the board of licenses of the city of

Pawtucket shall, after application, have the authority to exempt from the provisions of this section

any proposed retailer Class B, C, or I license intended to be located within the following

described area in the city of Pawtucket:

      Beginning at the point of intersection of Dexter Street and the Central Falls line, then

east along the Central Falls line to the Blackstone River, then north along the city boundary on

the Blackstone River to the Cumberland line, then west along the Pawtucket city boundary line to

I-95, then south along I-95 to Pine Street, then north on Pine Street to AMTRAK Right of Way,

then northwest along the AMTRAK Right of Way to Dexter Street, then north on Dexter Street to

the Central Falls line.

      (9) Notwithstanding the provisions of this section the town council of the town of Little

Compton, after application, is authorized to exempt from the provisions of this section relating to

places of worship any class B license limited to malt and vinous beverages intended to be located

on Plat 30, Lot 33 of the town of Little Compton tax assessment map existing as of December 31,

2004.

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      (10) Notwithstanding the provisions of this section, the board of licenses of the town of

Bristol shall, after application, have the authority to exempt from the provisions of this section

any proposed retailers' Class B license intended to be located on lots 3, 18, and 19 of tax

assessors plat 10 of the Bristol tax assessors map as of December 31, 2007.

      (11) Notwithstanding the provisions of this section the town council of the town of

Smithfield, after application, is authorized to exempt from the provisions of this section, any class

B, C, or I license intended to be located on Plat 45, Lot 042 of the town of Smithfield, tax

assessment map existing as of December 31, 2007; provided, however, said exemption shall

apply only to any renewal of any class B, C, or I license issued for use at the said premises

located on plat 45, lot 042 as of December 31, 2011. In the event said license is not renewed, then

this exemption is hereby repealed in its entirety.

      (12) Notwithstanding the provisions of this section, the board of licenses of the city of

Providence shall, after application, have the authority to exempt from the provisions of this

section any proposed retailer Class B license intended to be located on plat 13, lots 31 and 32 of

the applicable city of Providence tax assessment map.

      (13) Notwithstanding the provisions of this section, the board of licenses of the town of

Tiverton shall, after the application, have the authority to exempt from the provisions of this

section a proposed retailer's Class BV license for a restaurant located on tax assessor's plat 181,

lot 1A.

      (14) Notwithstanding the provisions of this section, the board of licenses of the city of

Providence shall, after application, have the authority to exempt from the provisions of this

section any proposed retailer's Class B license intended to be located on tax assessor's plat 68, lot

732.

      (15) Notwithstanding the provisions of this section, the board of licenses in the city of

Providence shall, after application, have the authority to exempt from the provisions of this

section any proposed retailer's Class B license intended to be located on plat 105, lot 489, plat

105, lot 12 and plat 32, lot 232 of the applicable city of Providence tax assessment map.

      (16) Notwithstanding the provisions of this section the city council of the city of Central

Falls, shall, after application, have the authority to exempt from the provisions of this section any

proposed retailer's Class B license intended to be located on plat 5, lot 188 of the applicable city

of Central Falls tax assessment map.

      (17) Notwithstanding the provisions of this section, the board of licenses of the town of

Portsmouth shall, after application, have the authority to exempt from the provisions of this

section any proposed retailer's Class B license intended to be located on plat 37, lot 69 of the

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applicable town of Portsmouth tax assessment map.

      (18) Notwithstanding the provisions of this section, the board of licenses of the town of

North Providence shall, after application, have the authority to exempt from the provisions of this

section any proposed retailer's Class B license intended to be located on plat 23A, lot 98 of the

applicable town of North Providence tax assessment map.

      (19) Notwithstanding the provisions of this section, the board of licenses of the city of

Cranston shall, after application, have the authority to exempt from the provisions of this section

any proposed retailer's Class B license intended to be located on Plat 11, lot 3558 of the

applicable city of Cranston tax assessment map.

      (20) Notwithstanding the provisions of this section, the town council of the town of

Smithfield, after application, is authorized to exempt from the provisions of this section, any

Class B or C license intended to be located on Plat 6, Lot 54 of the town of Smithfield tax

assessors map as of December 31, 2012.

      (21) Notwithstanding the provisions of this section, the board of licenses of the city of

Cranston shall, after application, have the authority to exempt from the provisions of this section

any proposed retailers class B license intended to be located on tax assessors plat 1, lot 2170 of

the applicable city of Cranston tax assessment map as of December 31, 2012.

      (22) Notwithstanding the provisions of this section, the board of licenses in the city of

Providence shall, after application, have the authority to exempt from the provisions of this

section any proposed retailer's Class B license intended to be located on tax assessor's plat 43, lot

211.

      (23) Notwithstanding the provisions of this section, the board of licenses of the town of

North Providence shall, after application, have the authority to exempt from the provisions of this

section any proposed retailer's Class B license intended to be located on Plat 22A, Lot 336, of the

applicable town of North Providence tax assessment map.

      (24) Notwithstanding the provisions of this section, the city council of the city of Central

Falls shall, after application, have the authority to exempt from the provisions of this section any

proposed retailer's Class B license intended to be located on plat 1, lot 164 of the applicable city

of Central Falls tax assessment map.

      (25) Notwithstanding the provisions of this section, the board of licenses in the city of

Providence shall, after application, have the authority to exempt from the provisions of this

section any proposed retailer's Class B license intended to be located at 1948-1950 Westminster

Street on plat 35, lot 359 of the applicable city of Providence tax assessment map.

      (26) Notwithstanding the provisions of this section, the town council of the town of

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Middletown, after application, is authorized to exempt from the provisions of this section, any

proposed retailer's Class BV license intended to be located on Plat 107 NW, Lot 55 of the town of

Middletown's tax assessor's maps as of December 31, 2014.

     SECTION 4. Chapter 3-7 of the General Laws entitled "Retail Licenses" is hereby

amended by adding thereto the following sections:

     3-7-16.8. Additional licenses -- City of Providence. -- In addition to the licenses

provided for in this chapter, the board of licenses of the city of Providence is authorized to

establish and issue licenses as enumerated in this section. Before granting a license to any person

under the provisions of this section, the board of licenses of the city of Providence shall give

notice by advertisement published once a week for at least two (2) weeks in a newspaper of

general circulation published in the city of Providence. The advertisement shall contain the name

of the applicant and a description by street and number or other plain designation of the particular

location for which the license is requested. Notice of the application shall also be given, by mail,

to all owners of property within two hundred feet (200') of the place of business seeking the

application. The cost of the application shall be borne by the applicant. The notices shall state that

remonstrants are entitled to be heard before the granting of the license, and shall name the time

and place of the hearing. At the time and place, the remonstrators shall be granted a full

opportunity to make their objections before the licensing board acts upon the application.

     (1) Class S license - Supper club - Food and Nightclub. -

     (i) A retailer's Class S license is issued only to a licensed bona fide tavern keeper or

victualer whose tavern or victualing house may be open for business and regularly patronized at

least from nine o'clock (9:00) a.m. to seven o'clock (7:00) p.m. provided no beverage is sold or

served after one o'clock (1:00) a.m., nor before six o'clock (6:00) a.m. The licensing board may

fix an earlier closing time, at its discretion. The annual license fee for a Class S license shall be

four hundred dollars ($400) to two thousand five hundred dollars ($2,500).

     (ii) The license authorizes the holder to keep for sale and sell beverages including beer in

cans, at retail at the place described and to deliver them for consumption on the premises or place

where sold, but only at tables or a lunch bar where food is served. It also authorizes the charging

of a cover, minimum, or door charge. The amount of the cover, or minimum, or door charge is

posted at the entrance of the establishments in a prominent place.

     (iii) Any holder of a Class S license may file an application with the licensing board to

open for business and serve or sell beverages until two o'clock (2:00) a.m. on Fridays and

Saturdays and the night before legal state holidays. The fee for such application shall be between

two hundred dollars ($200) and one thousand dollars ($1,000). All requests for a two o'clock

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(2:00) a.m. license shall be advertised by the board of licenses in a newspaper of general

circulation published in the city of Providence.

     (iv) Subject to the provisions of the Providence zoning ordinance, a holder of a retailer's

Class S license is allowed to erect signs advertising their business and products sold on the

premises, including neon signs, and is allowed to light those signs during all lawful business

hours, including Sundays and holidays.

     (v) The holder of a Class S license may convert their establishment from a supper club to

a nightclub between designated hours, upon approval by the board of licenses at the time of the

original application. The applicant shall provide to the board the designated hours it will operate

as a nightclub, and all other information as required by the board of licenses for approval of a

Class N license. Upon approval of such application, the licensee shall adhere to all conditions

required for a Class N license holder. Provided a Class S license holder has applied for and been

approved for this additional nightclub format and a violation subsequently occurs, the board may

choose to impose a penalty on the supper club operation or the nightclub operation, or both, as

determined by the format in operation at the time of the violation.

     (2) Class SB license - Smoking Bar -

     (i) A retailer's Class SB license authorizes the holder of the license to keep for sale and to

sell beverages at retail at the place described in the license. No beverages shall be sold or served

after one o'clock (1:00). a.m. nor before six o'clock (6:00) a.m., except as provided in subsection

(4) of this section. The board of licenses may fix an earlier closing time at its discretion. The

license authorizes the holder to keep for sale and sell beverages, including beer in cans, at retail at

the place described in the license. The annual fee for the license shall be the same as for the Class

B license, prorated to the year ending December 1 in every calendar year. The annual license fee

for a Class SB license shall be four hundred dollars ($400) to two thousand five hundred dollars

($2,500).

     (ii) All applicants for a Class SB license must have as its primary business purpose the

sale of tobacco for consumption on the premises. Under this section, tobacco products shall mean

any substance containing tobacco leaf, including, but not limited to, cigarettes, cigars, pipe

tobacco, snuff, chewing tobacco, dipping tobacco, orbs, sticks, dissolvable tobacco products, and

electronic cigarette cartridges and any electronic smoking devices derived from tobacco,

including nicotine; provided, however, that tobacco products shall not include any product that

has been approved by the United States Food and Drug Administration for use as a medical

treatment to reduce and eliminate nicotine or tobacco dependence.

     (iii) Smoking bars may sell food prepared on or off the premises.

LC005399 - Page 17 of 20

     (iv) Smoking bars shall allow only consumption of food and beverages sold by the

licensee on the premises, and shall not permit occupants to bring food and beverages to the

premises for consumption.

     (v) Effective July 1, 2016, all establishments holding, or required to hold, an SB license,

whether existing or to be established, must demonstrate to the licensing board, by a

preponderance of the evidence, that annual revenues generated by tobacco sales are greater than

fifty percent (50%) of the total gross revenue for the establishment, and that the serving of food,

alcohol, or beverages is only incidental to the consumption of such tobacco products. Such

evidence must be provided to the licensing board:

     (A) Upon the filing of any application for a Class SB license, including that provided for

in subsection (2)(vii) of this section; and

     (B) Quarterly for a period of one year, and annually thereafter; and

     (C) At any other time upon the licensing board's request.

     (vi) Every owner of a smoking bar shall register no later than January 1 of each year with

the division of taxation and shall provide, at a minimum, the owner's name and address, any agent

for service of process, and the name and address of the smoking bar.

     (vii) Any holder of a Class SB license may file an application with the licensing board to

sell or serve beverages on Fridays and Saturdays and the night before legal state holidays until

two o'clock (2:00) a.m. The fee for such application shall be two hundred dollars ($200).

     (viii) Any smoking bar, as defined herein, is required to provide proper ventilation and

smoke filtration system(s) that will prevent the migration of smoke into the street, or any other

parts of the inhabited building, in accordance with chapter 20.10 of title 23.

     (ix) The licensing board is authorized to immediately suspend or revoke the license or

exercise other remedies with respect to:

     (A) Any Class SB licensee that provides entertainment without an entertainment license

issued by the city of Providence pursuant to its authority under chapter 22 of title 5; and/or

     (B) Any Class SB licensee that engages in activities exceeding those permitted by a Class

SB license, unless such licensee has obtained any additional license permitting such activities,

including, but not limited to, a Class N license.

     3-7-16.8.1. Class SB licenses - Smoking. -- Upon the licensing board's establishment of

a Class SB license, smoking shall be prohibited in all licensed premises not holding a Class SB

license, including, but not limited to, premises governed by Class B, C, I, N, NB, and S licenses.

     SECTION 5. Chapter 5-22 of the General Laws entitled "Shows and Exhibitions" is

hereby amended by adding thereto the following section:

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     5-22-1.1. Live entertainment -- City of Providence. -- The board of licenses for the city

of Providence is authorized to license, regulate or prohibit "live entertainment" in the city of

Providence including, but not limited to, live performances of music or sound by individuals,

bands, musicians, disc jockeys, dancing, or karaoke, with or without charge, provided that

"incidental entertainment" be permitted as of right, and no license shall be required. "Incidental

entertainment" means background music provided at a restaurant, bar, nightclub, supper club or

similar establishment, limited to the following format:

     (1) Live music performance limited to no more than a maximum of three (3) acoustic

instruments which shall not be amplified by any means, electronic or otherwise; or

     (2) Prerecorded music or streamed music played over a permanently installed sound

system. If a bar or restaurant includes incidental entertainment, it cannot charge a cover charge,

shall not allow dancing by patrons of the establishment, cannot employ flashing, laser or strobe

lights, and the maximum volume, irrespective of the format, is limited solely to the boundaries of

the premises at all times, and shall permit audible conversation among patrons of the

establishment.

     SECTION 6. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- LIQUOR CONTROL ADMINISTRATION

***

     This act would clarify Class B, C and N liquor licenses to authorize the board of licenses

for the city of Providence to take action with respect to licensed entities providing entertainment

without a proper license; and would also establish new Class S (Supper Club) and Class SB

(Smoking Bar) licenses. This act would also require licensees to cooperate with local licensing

boards and law enforcement investigating potential violations, and permit licensing boards to

suspend or revoke a license for misrepresentations and failure to cooperate with an investigation.

This act would further authorize the city of Providence to regulate live entertainment.

     This act would take effect upon passage.

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